HIP11: Usage-based Data Transfer Rewards

[charlesfayal]

Discussion area for HIP

Rendered view: https://github.com/helium/HIP/blob/0c76a685e64885832c265b44fda87a4d58a4e97d/NNNN-usage-based-rewards-structure.md

Pull Request: #33

[Carniverous19]

So what we will likely see with this is all gaming hotspots will run exactly 100k DC (or whatever the cap is) through their hotspot each epoch. You will not see any overflow of rewards because gaming hotspots would know its not valuable.

With an oracle price of ~$2 100k DC would pay 5 HNT. This means once ~222 hotspots are able to churn 100k DC / epoch the 1113.4 HNT / epoch representing 32.5% distribution would hit and the 10:1 reward would drop. If the cap is in DC, not HNT as you propose the gaming hotspots wouldnt be able to increase traffic to get back to 5 HNT but they would still see significant gains for running junk data (maybe only 8:1, 5:1, 3:1 as more hotspots figure out how to reach that 100k DC cap).

This would still likely lead to a very large percentage of the data transfer HNT going to "gaming" hotspots and not organic data.

[jamiew]

I edited your description to link directly to the rendered view of the HIP

[jamiew]

As discussed on last community call, we're retiring this HIP: https://docs.google.com/document/d/1bMm2alBigBj3detA775Dn0Gz9UM5XczAeK9vnjBB3l0/edit#heading=h.afj80v7w0lhh

Thanks for your submission